How UCMR-ADA Collects 2023 Music Royalties (1)

UCMR-ADA is the Romanian Composers Society – the Collective Management Organization (CMO) representing those who create music.

Income collected in 2023 by UCMR-ADA by category

UCMR-ADA manages the “song-related” royalties (both performance and mechanical) and distributes the proceeds to the team responsible for creating the song, including the composer, lyricist, and arranger.

It counts 11.4k members as of August 2024.

It collects royalties across 11 different categories, according to legislation that is readily available on their website. The financial report (“Dare de seama”) for 2023 can be found here.

It also includes income generated from interest on deposits held by UCMR-ADA in their bank accounts.

Let’s take a look at how effectively UCMR-ADA is collecting royalties across various categories.


AMBIENTAL (27.34%)

Ambiental is the most effective collection method in Romania, accounting for approximately 27% of the total incoming funds for the region.

This success can be attributed to the large collection pool of 13,700 payees and the efficient legal framework in place. Collections occur either monthly or per event, covering virtually every location where music is played in the background, including hotels, restaurants, malls, airports, office and medical buildings, sports arenas, conferences, weddings, and other one-time events.

In 2023, UCMR-ADA collected 42.88 million RON (approximately 9.45 million USD) in this category. It distributed 24.35 million RON (about 5.36 million USD) to 2,600 members within the same category.

2023 payments to members for Ambiental category

An “analogy” method is employed to determine payment distribution within this category. UCMR-ADA reviews playlists submitted by select radio and TV stations, as well as concert promoters. They then assign weights—65% for radio playlists, 30% for TV, and 5% for concerts. Once the amounts are calculated, they assess the composers featured on those playlists.

This creates an incentive for composers to have their music played on those particular radio and TV stations, in order to collect a royalty in the most lucrative category, Ambiental.


READ PART 2 OF THE SERIES AT THIS LINK.

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